Have you caught wind of the rumor about a potential IT reorganization or the buzz that the entire IT might be handed over to consulting giants like Accenture, Deloitte, and others?
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Playing musical chairs with job reqs.
Not enough for everyone, so some people will be left out
From what I am hearing(from someone attending the "Bored" room meetings), GM is considering services with Tata, maybe Deloitte as well. As to what specific services that will be taken over, it seems to be a general vague scope right now.
September 14th will be the so-called "boundary" day(from September 14th on, GM will have to deal with the UAW strike). GM will only be doing so called "Redundancy/fat trimming" of non-essential people within ORGS(the person who I got the info from mentioned the word "Broad" regarding ORGS).
Anyone in "IT" who received "Critical Technical Talent" awards will be fair game. GM's plan is replace those people with NCHs as it will serve as a significant cost reduction (GM added another billion to cut in costs). I personally think this is REALLY stupid as it will vastly drain GM's talent and experienced employees.
It sounds like the same so-called "November" deadline to find another job. This is going to be just "pointless" as everyone knows the job reqs out there are not as plentiful(it will be equivalent to all of the N people in the Titanic trying to get into X lifeboats).
As soon as the UAW fiasco gets settled, say between September and December, GM will be going after the "Fat" in IT.
My department is going insane right now with the workload; we REALLY don't need this stuff to happen.....
Time to stock up on Bitcoin
"With all those unfilled jobs there must be a shortage of workers. Get rid of the H1B cap!"
In general, companies often post job openings that they don't want to fill and no one in their right mind would apply for so they can claim that no Americans are available to be hired and they need to bring in H1Bs.
It's all a game.
"Entry level position, pays $50k per year, must have PhD in nuclear physics and 10 years experience leading a team of 20 at CERN."
It also makes it look like companies are trying to hire more people than they are. "Look at how many jobs go unfilled!"
AI to replace 8,000 jobs at IBM. 30% of all non-customer facing roles will be cut over the next five years.
Which roles? “Back office functions”, including HR, finance, accounting and other areas.
Extrapolate what you will for other corporations. IMO it’s obvious that any job that crunches data and/or offers customers service (or training!) are replaceable by AI.
Article states that 18% of all global jobs will be replaced by AI.
https://finance.yahoo.com/news/ibm-plans-replace-nearly-8-174052360.html
I don't doubt this at all, but if this is possible why are there so many job openings being posted lately?
Since 1984, about 30 of the last 40 years,
GM IT has been outsourced. Mary has been through it all (I remember when she made every L8 in PD interview for their job and dropped many to L7). So, the Szygenda GSC’s (Global Support Contracts split by BU, hosting…) put out to bid to vetted companies may be back on the table. Prior to the GSCs, it was all EDS, then HP. Why did Mott not use offshore - India, China… - support with the sun…. Dev… - very strange. Offshore now is Chandler, Austin and Georgia.
Much of the internal and customer facing web, mainframe apps can be supported by external contracts. I don’t think Abbott was hired to manage the legacy cr-p, nor does he want too.
Mott was an experiment and I do not believe it was his decision to leave.
Hopefully the GM IT org is not a director with 3 reports (L9’s, L8’s), reporting to a director, reporting to an executive director… that are all Mott cronies.
The new CIO has new priorities transitioning from ICE to EV and the digital auto market (autonomous, subscriptions (no appleplay), OTA….).
The times are a changing.
Just my opinion.
Another prime example of how GM upper management is sworn to secrecy.
Mary would be the one making that decision.
This is the future. Do everything you're supposed to do (go to college and get into debt, work hard, learn "in demand" skills), and then someone making 20X what you make decides to give your job to Rohit or Deepak who lives in Bangalore or is on H1B. Before too long, Rohit and Deepak will be replaced by AI. Then what?
Offering retraining to workers who are losing their jobs isn't mocking them, it's trying to help them.
Silly statements about the SLT not realizing they could save money by using Third World workers in India, China, and Mexico until WFH started don't deserve to be taken seriously.
GM will cut costs regardless of your cynicism.
You can't snark your way out of a job cut.
Good luck.
Because before Covid and WFH, GM never had offices in India or China, or brought H1Bs into the US.
WFH made the SLT aware of the cost saving possibilities of having people from poor countries do the work instead of Americans for the first time.
Yeah, right.
IT workers demonstrated that their work could be done remotely by faceless people. To SLT there’s no difference between Raj in India and Jason in Centerline.
Enjoy the irony.
When plant workers, engineers, designers and suppliers lost their jobs during the last recession, people mocked them and told them, “it’s a service economy dummy” and “learn to code”.
Let them eat cake essentially.
Now domestic IT is being decimated and people are crying, “where will the IT workers go?”
Having been an engineer who was cut, I can give you some tips. First, if you want to work you will have to relocate and take a big pay cut. In the meantime expect extreme hardships. Can’t pay bills with unemployment. Interpersonal relationships tend to fray. The stress is high. Or you can stick around and become underemployed. Working (2) or more jobs and a side hustle while your friends and neighbors judge you.
It’s not fun but this is where things are headed.
As far as SLT is concerned, they likely are still butthurt about all of the IT staff that complained endlessly about RTO. Some really nasty things were said on Reddit. Don’t put it past them to want retribution.
Enjoy the race to the bottom.
Tata and Wipro are cheaper than Accenture and Deloitte.
Money saved is obvious to the SLT.
Lower quality isn't as obvious, at least until Consumer Reports, Car and Driver, etc. publish the quality rankings.
With GM adding another 1 Billion to their cost savings reduction, it is going to be nasty for us. They can only cut so much. GM will probably start with their "Critical Technical Talent" first as they are tagged as one of those groups of people that make a significant amount of money. They will just replace those people with some agreed services from some external vendor. If GM does start using other services(Accenture, Deloitte), like what everyone is mentioning in the chat, the whole concept of "Quality" is going to go down the toilet as mentioned as well, and those Big-Wigs making those decisions are going to think they are saving GM a BIG amount of $$$.....So sad and depressing....
So are they going to lay off all the American IT workers?
That'll be horrible.
GM used to outsource IT, but Randy Mott insourced it and started the innovation centers because the contractors quoted estimates to do work that were about twice as long as the work should take, the code quality was poor and unmaintainable, and the contractors would nickel and dime them for extra charges for every little change or extra work requested.
Let's see if history repeats itself.
I agree that's probably the plan, to outsource to contract houses who use H1Bs, but what happens to existing US IT employees?
The contract houses won't hire the American employees at their current salary because the whole reason for doing this is to cut costs, and no one wants to take a 30-40% pay cut to be able to work for them and do the same job they're doing now as GM employees.
If a company can outsource its non-core IT and receive 30% savings, and additional 5 - 10% year over year savings for the next 5 years, this strategy would make fiscal sense. The big push from out sourcing to in sourcing was under Randy Mott's prior leadership, and for the most part made sense, but the resourcing climate has changed since then, due to it being harder to attract and retain IT talent long term. Contract houses are primarily staffed with H1Bs, where the employees cannot easily bounce to another company, since they are often sponsored via their contract house. If the employee leaves, they would need to restart their green card process resulting in a 5 - 10 year delay. Therefore contract houses can provide long term employees at set rates.
Short sighted cost cutting measures like this do not end well, especially for the workers that are left to rely on contractors for support. Ask anyone working at Well Fargo or Allstate right now. It's also a huge morale and work culture ki-ler when entire departments are gutted.
Yes, I heard something as well. I had asked my director about the rumor, and his eyes were like a deer seeing headlights on a car. All he said was something was being discussed, and that people outside those meetings should not be "Privy" to that information.
That would be smart!